Danni Hewson, head of financial analysis at AJ Bell, said: “Investors had a lot to ponder as UK retail behemoth Frasers Group decided not to furnish them with financial guidance for the year ahead.
“The company is still in expansion mode and currently in the middle of potential takeover talks with Hugo Boss and Australian footwear retailer Accent Group, which creates a rather muddy picture.
“There were also warnings from CEO Michael Murray that although parts of the business were performing well, consumers are still under pressure and that could result in a whole load of excess stock. Excess inventory has to be stored and could well end up being sold off at a significant discount to make way for new seasonal trends.
“Frasers is a business that has made an art out of spotting struggling retailers, snapping them up and integrating them into a growing portfolio with an expanding geographic footprint that helps offset weak periods of demand.
“But the lack of clarity about the year ahead has spooked investors and shares ended the day down almost two per cent.”
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